Patterson, Edghill clash over viability of Amaila Falls Hydro Project

Jan 30, 2025 News

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Kaieteur News- Opposition Member of Parliament (MP) David Patterson and Minister of Public Works, Juan Edghill, went head-to-head in the National Assembly on Wednesday during the 2025 budget debate, over the viability of the Amaila Falls Hydropower Project (AFHP).

The Amaila Falls Hydro Project was first introduced by the People’s Progressive Party/Civic (PPP/C) administration in 2011, but had been shelved on several occasions. The PPP had blamed the previous APNU+AFC Coalition government for the delays and, since returning to office in 2020, it has vowed to revive the project, though it remains stalled.

Patterson, a former Minister of Public Infrastructure, questioned the feasibility of the project, citing past assessments from the Inter-American Development Bank (IDB). In contrast, Edghill defended the initiative, pointing to reports commissioned by the former APNU+AFC administration that deemed the project sound but needed financial restructuring to make it attractive for government and potential investors. Patterson, who spoke first, accused the government of misleading the nation on the Amaila Falls project, arguing that the IDB had deemed the project too risky to fund. He highlighted findings from the IDB’s 2014 due diligence report, stating, “The Bank has never approved a loan with this rating.”

He further contended that the APNU+AFC coalition saved Guyana from financial ruin by not moving forward with the project. “The country dodged a bullet because of us…. The PPP were warned that the Amaila Falls project was not feasible, that it was what we, on this side of the House, considered a Ponzi scheme to enrich certain individuals but they did not listen,” Patterson stated.

Further, the Opposition MP also criticised the government for continuously presenting the project as Guyana’s solution to high electricity costs despite past warnings. “Ten years ago, the PPP were informed that this project was a nonstarter, yet every budget, the Minister comes to this Parliament and presents this project as the PPP’s solution to our power needs,” he argued.

He said too, “Which other government, anywhere in the world would try to saddle their country with a project that independent experts … ruled is unsustainable and, of course, use cheap excuses like the APNU+AFC derailed the project.”

In response, Minister Edghill accused the Opposition of deliberately obstructing the project for political reasons.  He cited a report by Norconsult, which was commissioned by the APNU+AFC administration in 2016. Minister Edghill stated that the report supported the project’s viability. “From a financial and economic point of view, development of Amaila Falls seems to be the optimal solution for meeting the electricity demands in Guyana. The project should be financially restructured in order to make it more attractive for GoG and potential investors, since the perceived risk of investing in Guyana are high mainly due to political and regulatory reasons,” he read from the report.

The Government MP further argued that under the PPP/C, Blackstone, a major multinational firm, had been willing to finance the project without requiring taxpayer funds. He claimed that all the government needed was parliamentary approval to increase the debt ceiling to guarantee the investment. Edghill said, “US$80 million from the 250 [million US dollars] we had earned from Norway through the Low Carbon Development Strategy would have been put in as equity, and all that was required was the Parliament of Guyana to vote to increase the debt ceiling to give the necessary guarantees to the investor to invest…It was Mr. Patterson and his party that got up in Parliament and blocked it.”

Moreover, the Minister also alleged that the APNU+AFC’s decision to oppose the project was politically motivated. “They knew that if we had gotten the Amaila Falls Hydro Project, and the cost of electricity went down, they saw no chance of ever getting back into government…It is their same modus operandi now with the Gas-to-Energy project,” Minister Edghill said.

In 2023, the government attempted to revive the AFHP after talks with a previous contractor fell through. A revised Request for Proposals (RFP) was issued under a Build-Own-Operate-Transfer (BOOT) model. Four companies: Rialma of Brazil, China International Water and Electric Corporation, CH4 Guyana Inc., and OECGE WORLAY (a Guyana-Brazil-US joint venture) submitted bids in December 2023. However, the project remains stalled. Vice President Bharrat Jagdeo indicated last September that the government may either negotiate with the top-ranked prequalified bidders or restart the procurement process. Earlier this month, it was revealed that the government is still reviewing proposals from the last tender. The Amaila Falls Hydropower Project, projected to supply 165 megawatts (MW) of electricity to Guyana’s national grid, was shelved multiple times due to financial and political hurdles.

(Patterson, Edghill clash over viability of Amaila Falls Hydro Project)

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• Amaila Falls, David Patterson, Juan Edghill, project

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